The Nasdaq was down about 4% in a session following the U.S. midterms, a market commentator said, warning that the retreat echoes the selloff that followed the 2018 election. The speaker noted that the S&P 500 rose approximately 2.12% on Nov. 7, 2018, before surrendering those gains and falling further into December.
The commentator said Bitcoin also came under pressure during the fourth-quarter equity selloff in 2018. The comparison is a warning about potential spillover, not a prediction that the same sequence will repeat.
Why it matters
The speaker identified a hawkish Federal Reserve, trade tensions and pressure on technology valuations as similarities between the two periods. In 2018, Fed Chair Jerome Powell signaled further tightening, while companies including Caterpillar, 3M and Ford warned about tariff costs.
The commentator also pointed to uncertainty surrounding Iran and the potential for greater regulatory scrutiny of artificial intelligence. Those risks sit alongside the pressure on technology shares, in the speaker's assessment.
Market impact
The Nasdaq was testing its July low, the speaker said, raising the possibility that Bitcoin could also revisit its July low if equity weakness spreads. That outcome remains uncertain: the commentator did not forecast a specific Bitcoin price or claim the 2018 pattern would repeat exactly.
For investors, the comparison puts the relationship between technology stocks and Bitcoin in focus as markets assess monetary policy and trade risks.
Frequently asked questions
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What happened to the S&P 500 after the 2018 midterms?
The S&P 500 rose approximately 2.12% on Nov. 7, 2018, before surrendering those gains and falling further into December, the commentator said.
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Why did the commentator bring up Bitcoin?
The speaker said Bitcoin came under pressure during the fourth-quarter equity selloff in 2018 and warned that equity weakness could spill over again.
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Which risks did the speaker compare with 2018?
The commentator cited a hawkish Federal Reserve, trade tensions and pressure on technology valuations.
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What price level did the speaker highlight for Bitcoin?
The speaker raised the possibility that Bitcoin could revisit its July low, noting that the Nasdaq was testing its own July low.
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Did the commentator predict an exact repeat of 2018?
No. The speaker described the parallels as a warning and acknowledged that the market may not follow the same path.
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